Rainbow Denim Ltd - Stock Valuation and Financial Performance

BSE: 532441 | NSE: | Textile - Weaving | Small Cap

Rainbow Denim Share Price

3.44 0.00 0.00%
as on 18-May'23 18:01

DeciZen - make an informed investing decision on Rainbow Denim

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Rainbow Denim stock performance -

mw4me loader
P/E Ratio (SA):
0.00
Market Cap:
4.6 Cr.
52-wk low:
3.2
52-wk high:
4.1

Is Rainbow Denim Ltd an attractive stock to invest in?

1. Is Rainbow Denim Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Rainbow Denim Ltd is a average quality company.

2. Is Rainbow Denim Ltd undervalued or overvalued?

The key valuation ratios of Rainbow Denim Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Rainbow Denim Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rainbow Denim Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Rainbow Denim:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rainbow Denim Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % -7.7%-2%-18.1%-16.1%-10.1%-4.2%26.6%52.3%23.2%-0.1%-
Value Creation
Index
NANANANANANANANANANA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 183162120169222181149716.20.50
Sales YoY Gr.--11.6%-25.7%40%31.7%-18.3%-17.8%-52.3%-91.3%-92.6%-
Adj EPS -10.7-14.6-21.2-14.7-7.4-6.8-11.1-16-12.1-5.7-1.7
YoY Gr.-NANANANANANANANANA-
BVPS (₹) -3.9-24.9-30.8-77.8-85.2-92-95.8-104.4-116-121.7-122.7
Adj Net
Profit
-19.4-10.7-28.2-19.6-9.8-9.1-14.7-21.2-16-7.5-2
Cash Flow from Ops. 23.72.60.3-0.139.3-16.34.2-2.3-0.4-
Debt/CF from Ops. 5.856.2508.4-1330.956.810.6-6.924.7-51.9-304.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -48.6%-70.9%-85.4%-92.6%
Adj EPS NANANANA
BVPSNANANANA
Share Price 6.1% -11.5% 45.8% 3.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on
Equity %
-2731.2161.4106.127.197.711.815.9114.81.4
Op. Profit
Mgn %
-0.15.8-7.610.5-2.9-9.3-31.5-233.3-1420.6-278.7
Net Profit
Mgn %
-10.6-6.6-23.4-11.6-4.4-5-9.9-29.8-258-1646.2-606.6
Debt to
Equity
-19.4-7.9-3.5-1.5-1.5-0.8-0.9-0.8-0.8-0.8-
Working Cap
Days
115121149104981241472321,0556,440793
Cash Conv.
Cycle
63577439221419-3842,024-20,042

Recent Performance Summary

Sales growth is good in last 4 quarters at 126.67%

Return on Equity has declined versus last 3 years average to 1.40%

Sales growth has been subdued in last 3 years -85.44%

Latest Financials - Rainbow Denim Ltd.

Standalone Consolidated
TTM EPS (₹) -1.7 -
TTM Sales (₹ Cr.) 0.4 -
BVPS (₹.) -122.7 -
Reserves (₹ Cr.) -176 -
P/BV -0.03 -
PE 0.00 -
From the Market
52 Week Low / High (₹) 3.16 / 4.08
All Time Low / High (₹) 0.90 / 29.50
Market Cap (₹ Cr.) 4.6
Equity (₹ Cr.) 13.3
Face Value (₹) 10
Industry PE 20.3

Management X-Ray of Rainbow Denim:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *22.8122.8122.8122.8122.8122.8122.8122.8922.8922.89
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Rainbow Denim

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21
Sales183.38162.18120.47168.61222.03181.31149.0471.046.210.46
Operating Expenses 183.50152.90130.03166.88220.85186.65162.8493.4420.896.96
Manufacturing Costs41.8742.1030.6644.0964.3752.3543.5920.961.100.36
Material Costs119.7290.1881.17102.07129.09106.9192.8946.825.561.92
Employee Cost 13.6613.8512.5713.1616.7816.7116.8314.6611.393.94
Other Costs 8.256.775.637.5610.6110.699.5311.012.850.74
Operating Profit -0.129.28-9.561.731.18-5.34-13.80-22.40-14.68-6.50
Operating Profit Margin (%) -0.1%5.7%-7.9%1.0%0.5%-2.9%-9.3%-31.5%-236.0%-1,420.6%
Other Income 1.330.700.360.600.1611.4624.8025.2811.6111
Interest 11.3511.3710.0210.736.5712.0213.8412.2011.2010.81
Depreciation 8.969.169.1511.124.513.052.272.011.891.15
Exceptional Items 1.26000000000
Profit Before Tax -17.84-10.55-28.38-19.52-9.73-8.95-5.11-11.33-16.16-7.46
Tax 0000000000
Profit After Tax -17.84-10.55-28.38-19.52-9.73-8.95-5.11-11.33-16.16-7.46
PAT Margin (%) -9.7%-6.5%-23.6%-11.6%-4.4%-4.9%-3.4%-15.9%-260.0%-1,630.6%
Adjusted EPS (₹)-9.8-14.5-21.4-14.7-7.3-6.7-3.9-8.5-12.2-5.6
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21

Equity and Liabilities

Shareholders Fund -7.09-18.11-40.96-103.40-113.13-122.14-127.30-138.70-154.12-161.65
Share Capital 18.217.2813.2813.2813.2813.2813.2813.2813.2813.28
Reserves -25.30-25.39-54.24-116.68-126.41-135.43-140.59-151.99-167.40-174.93
Minority Interest0000000000
Debt127.50127.70122.37132.65148.6082.54102.2582.0479.9258.14
Long Term Debt104.7391.4288.19110.21144.6480.8095.3380.5076.4354.66
Short Term Debt22.7636.2834.1922.443.961.736.911.543.493.49
Trade Payables24.3021.6720.4230.5744.3848.6052.6543.9035.1235.13
Others Liabilities 20.0728.2134.4332.9622.4081.7766.1265.627398.68
Total Liabilities 164.77159.48136.2792.78102.2590.7693.7152.8633.9230.30

Fixed Assets

Gross Block200.48200.25200.37200.44201.55202.20200198.46198.46198.46
Accumulated Depreciation88.9098.21107.83161.87166.32169.34170.53172.49174.38175.54
Net Fixed Assets111.57102.0492.5338.5735.2332.8629.4725.9724.0822.92
CWIP 0000000000
Investments 0.040.040.040.040.030.030.030.030.030.03
Inventories21.7123.2015.9717.0621.1613.9515.1310.124.602.67
Trade Receivables23.1726.5722.5930.9633.5937.8740.5811.901.641.30
Cash Equivalents 1.931.371.490.670.791.200.640.260.480.54
Others Assets6.346.263.655.4811.464.857.864.593.092.84
Total Assets 164.77159.48136.2792.78102.2590.7693.7152.8633.9230.30

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21
Cash Flow From Operating Activity 23.712.560.28-0.112.959.28-16.294.23-2.27-0.42
PBT -17.84-10.55-28.38-19.52-9.73-9.02-5.16-11.40-15.41-7.53
Adjustment 17.0619.0919.0721.2210.913.52-8.64-7.041.771.03
Changes in Working Capital 24.5-5.989.59-1.811.7714.78-2.4822.6711.386.08
Tax Paid 0000000000
Cash Flow From Investing Activity -6.11-0.502.580.31-0.99-0.7214.7916.110.550.48
Capex -4.99-0.17-0.12-0.09-1.17-1.3114.6515.0500
Net Investments 0.010000.02000.0400
Others -1.13-0.322.700.400.160.590.141.020.550.48
Cash Flow From Financing Activity -18.06-2.63-2.75-1.02-1.84-8.150.93-20.721.930
Net Proceeds from Shares 0.19000000000
Net Proceeds from Borrowing -9.02-13.31-3.23-1.111.51-3.67-1.25-14.3800
Interest Paid -12.76-8.66-2.20-2.92-2.13-2.24-3-0.97-0.010
Dividend Paid 0000000000
Others 3.5319.342.693.01-1.22-2.235.18-5.381.950
Net Cash Flow -0.45-0.560.12-0.820.120.41-0.56-0.380.220.05
PARTICULARSMar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21
Ratios
ROE (%)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
ROCE (%)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Asset Turnover Ratio1.0610.811.472.281.881.620.970.140.01
PAT to CFO Conversion(x)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Working Capital Days
Receivable Days425674585372961353981,174
Inventory Days61515936313536654322,900
Payable Days609395911061591993762,5936,665

Rainbow Denim Ltd Stock News

Rainbow Denim Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rainbow Denim on 18-May-2023 18:01 is ₹3.44.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-May-2023 18:01 the market cap of Rainbow Denim stood at ₹4.57.
The latest P/E ratio of Rainbow Denim as of 18-May-2023 18:01 is 0.00.
The latest P/B ratio of Rainbow Denim as of 18-May-2023 18:01 is -0.03.
The 52-week high of Rainbow Denim is ₹4.08 and the 52-week low is ₹3.16.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rainbow Denim is ₹0.37 ( Cr.) .

About Rainbow Denim Ltd

Rainbow Denim Limited, a division of Rama Petrochemicals, aims to strengthen India’s present position of third largest producer of denim in the world by becoming a leading player in the industry, both in India and overseas. Set in the state of Punjab, their ultramodern plant uses the preferred rope-dyeing technology and has capacity to produce 18 million meters of denim per year.

The fabric is intended for exports to the developed markets of the world and the plant adheres to the strictest international norms of technology and environment-friendly processes. To keep pace with international fashion trends, Denim is not only produced in shades of blue, but various other colours as well, making Rainbow part of the select few in India with such manufacturing capabilities.

The modern, integrated plant of Spinning, Dyeing, Weaving and Finishing is equipped with state-of-the-art quality control systems at all the stages.

Rainbow has most modern Spinning Machines available in the industry. It has Blow Room/Automatic Bale Opener and Cards of ‘Crosrol Make’. These machines are equipped with latest technology like PLC, PNP and NPN Sensor, MCB to give trouble free working. Entire system is automatically synchronized with the help of Photohelic. No manual operation is required at any stage. These are also connected to a centralized waste evacuation to remove the cotton waste generated during process. Cards are equipped with Long Term and Mid Term Auto-leveller to maintain the uniformity of Sliver and are having on line monitoring system called Card Management System (CMS). Length of Sliver, quality of Sliver in terms of CV% and other technical parameters can be adjusted on CMS as per the requirement of production.

Products manufactured by the company:

They manufacture all the three categories of Denim:

  • Light Weight Denim (6.50 to   8.50 per square yard)
  • Medium Weight Denim (9.00 to 12.50 per square yard)
  • Heavy Weight Denim (13.50 to 14.75 per square yard)

Varieties:

  • Basic Denim (Open End x Open End)
  • Slub Denim (Slub x Open End)
  • Cross Hatch (Slub x Slub)
  • Poly Denim (Cotton x Polyester)
  • Stretch Denim (Cotton x Lycra)
  • Ring Slub Denim
  • Fancy Denim

Other varieties for the fashion demanding clients.

Achievements/ recognition:

  • National Quality Award 2000 'Golden Peacock National Award' instituted by the Indian Chapter of World Quality Council, for outstanding achievement in pursuit of total quality.
  • The products of the company have been certified for OEKO-Tex Standard 100 by the Oeko-Tex.
  • An ISO 14001 certified company.
  • Accredited Certification by NQA/QSR Quality System Register under endorsement of JAS-ANZ (Australia  and New Zealand).
  • 'Export House' issued by the Ministry of Commerce and Industry, Government of India.
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